GST on Insurance claim received

[Sharmila P]

I am a registered person under GST. My goods were lost by fire. With regard to this, I received an insurance claim from the insurer. Should i charge GST on the claim received by me from the insurer? what are input tax credit implications if i have availed ITC on the premium paid?

AI Summary

GST on Insurance Claims: No GST on received claims, reverse ITC on lost goods, retain ITC on premiums. A registered GST individual inquired about the tax implications of receiving an insurance claim for goods lost in a fire. The responses clarified that there is no need to charge GST on the insurance claim received. However, the individual must reverse the input tax credit (ITC) taken on the destroyed goods. Additionally, the ITC on the insurance premium paid can still be availed. Both respondents agreed on these points.